PENSIONS ACT 2004 (c. 35) Pensions Act 2004 CHAPTER 35 ARRANGEMENT OF SECTIONS PART 1 THE PENSIONS REGULATOR Establishment Section 1. The Pensions Regulator 2. Membership of the Regulator 3. Further provision about the Regulator General provisions about functions 4. Regulator’s functions 5. Regulator’s objectives 6. Supplementary powers 7. Transfer of OPRA’s functions to the Regulator Non-executive functions 8. Non-executive functions The Determinations Panel 9. The Determinations Panel 10. Functions exercisable by the Determinations Panel Annual report 11. Annual reports to Secretary of State Provision of information, education and assistance 12. Provision of information, education and assistance New powers in respect of occupational and personal pension schemes 13. Improvement notices 14. Third party notices 15. Injunctions and interdicts 16. Restitution 17. Power of the Regulator to recover unpaid contributions 18. Pension liberation: interpretation 19. Pension liberation: court’s power to order restitution 20. Pension liberation: restraining orders 21. Pension liberation: repatriation orders Supplement No. 97 [Dec 2011] The Law Relating to Social Security 5.3201 PENSIONS ACT 2004 (c. 35) Powers in relation to winding up of occupational pension schemes 22. Powers to wind up occupational pension schemes 23. Freezing orders 24. Consequences of freezing order 25. Period of effect etc of freezing order 26. Validation of action in contravention of freezing order 27. Effect of determination to wind up scheme on freezing order 28. Effect of winding up order on freezing order 29. Effect of assessment period under Part 2 on freezing order 30. Power to give a direction where freezing order ceases to have effect 31. Notification of trustees, managers, employers and members 32. Sections 23 to 31: supplementary Trustees of occupational pension schemes 33. Prohibition orders 34. Suspension orders 35. Appointments of trustees by the Regulator 36. Independent trustees 37. Disqualification Contribution notices where avoidance of employer debt 38. Contribution notices where avoidance of employer debt 38A. Section 38 contribution notice meaning of “material detriment test” 38B. Section 38 contribution notice issued by reference to material detriment test defence 39. The sum specified in a section 38 contribution notice 39A. Section 38 contribution notice: transfer of members of the scheme 39B. Section 39A: supplemental 40. Content and effect of a section 38 contribution notice 41. Section 38 contribution notice: relationship with employer debt 42. Section 38 contribution notice: clearance statements Financial support directions 43. Financial support directions 43A. Financial support directions: transfer of members of the scheme 43B. Section 43A: supplemental 44. Meaning of “service company” and “insufficiently resourced” 45. Meaning of “financial support” 46. Financial support directions: clearance statements 47. Contribution notices where non-compliance with financial support direction 48. The sum specified in a section 47 contribution notice 49. Content and effect of a section 47 contribution notice 50. Section 47 contribution notice: relationship with employer debt 51. Sections 43 to 50: interpretation Transactions at an undervalue 52. Restoration orders where transactions at an undervalue 53. Restoration orders: supplementary 54. Content and effect of a restoration order 55. Contribution notice where failure to comply with restoration order 56. Content and effect of a section 55 contribution notice Sections 38 to 56: partnerships and limited liability partnerships 57. Sections 38 to 56: partnerships and limited liability partnerships 5.3202 Supplement No. 97 [Dec 2011] The Law Relating to Social Security PENSIONS ACT 2004 (c. 35) Applications under the Insolvency Act 1986 58. Regulator’s right to apply under section 423 of Insolvency Act 1986 Register of schemes 59. Register of occupational and personal pension schemes 60. Registrable information 61. The register: inspection, provision of information and reports etc 62. The register: duties of trustees or managers 63. Duty of the Regulator to issue scheme return notices 64. Duty of trustees or managers to provide scheme return 65 Scheme returns: supplementary Register of prohibited trustees 66. Register of prohibited trustees 67. Accessibility of register of prohibited trustees Collecting information relevant to the Board of the Pension Protection Fund 68. Information relevant to the Board 69. Duty to notify the Regulator of certain events Reporting breaches of the law 70. Duty to report breaches of the law Reports by skilled persons 71. Reports by skilled persons Gathering information 72. Provision of information 73. Inspection of premises 74. Inspection of premises in respect of employers’ obligations 75. Inspection of premises: powers of inspectors 76. Inspection of premises: supplementary 77. Penalties relating to sections 72 to 75 78. Warrants 79. Sections 72 to 78: interpretation Provision of false or misleading information 80. Offences of providing false or misleading information Use of information 81. Use of information Disclosure of information 82. Restricted information 83. Information supplied to the Regulator by corresponding overseas authorities 84. Disclosure for facilitating exercise of functions by the Regulator 85. Disclosure for facilitating exercise of functions by the Board 86. Disclosure for facilitating exercise of functions by other supervisory authorities 87. Other permitted disclosures 88. Tax information etc Supplement No. 97 [Dec 2011] The Law Relating to Social Security 5.3203 PENSIONS ACT 2004 (c. 35) Reports 89. Publishing reports etc Codes of practice 90. Codes of practice 91. Procedure for issue and publication of codes of practice 92. Revocation of codes of practice Exercise of regulatory functions 93. The Regulator’s procedure in relation to its regulatory functions 94. Publication of procedure in relation to regulatory functions 95. Application of standard and special procedure 96. Standard procedure 97. Special procedure: applicable cases 98. Special procedure 99. Compulsory review 100. Duty to have regard to the interests of members etc 101. Powers to vary or revoke orders, notices or directions etc The Pensions Regulator Tribunal 102. The Pensions Regulator Tribunal (omitted) 102A. Offences 103. References in relation to decisions of regulator 104. Appeal on a point of law (omitted) 105. Redetermination etc by the Tribunal (omitted) 106. Legal assistance scheme PART 2 THE PENSIONS REGULATOR CHAPTER 1 THE BOARD Establishment 107. The Board of the Pension Protection Fund 108. Membership of the Board 109. Further provision about the Board General provision about functions 110. Board’s functions 111. Supplementary powers Non-executive functions 112. Non-executive functions Financial matters 113. Investment of funds 114. Investment principles 115. Borrowing 116. Grants 117. Administration levy 118. Fees 5.3204 Supplement No. 97 [Dec 2011] The Law Relating to Social Security PENSIONS ACT 2004 (c. 35) Annual reports 119. Annual reports to Secretary of State CHAPTER 2 INFORMATION RELATING TO EMPLOYER’S INSOLVENCY ETC Insolvency events 120. Duty to notify insolvency events in respect of employers 121. Insolvency event, insolvency date and insolvency practitioner Status of scheme 122. Insolvency practitioner’s duty to issue notices confirming status of scheme 123. Approval of notices issued under section 122 Board’s duties 124. Board’s duty where there is a failure to comply with section 122 125. Binding notices confirming status of scheme CHAPTER 3 PENSION PROTECTION Eligible schemes 126. Eligible schemes Circumstances in which Board assumes responsibility for eligible schemes 127. Duty to assume responsibility for schemes following insolvency event 128. Duty to assume responsibility for schemes following application or notification 129. Applications and notifications for the purposes of section 128 130. Board’s duty where application or notification received under section 129 131. Protected liabilities Restrictions on schemes during the assessment period 132. Assessment periods 133. Admission of new members, payment of contributions etc 134. Directions 135. Restrictions on winding up, discharge of liabilities etc 136. Power to validate contraventions of section 135 137. Board to act as creditor of the employer 138. Payment of scheme benefits 139. Loans to pay scheme benefits Ill health pensions 140. Reviewable ill health pensions 141. Effect of a review 142. Sections 140 and 141: interpretation Supplement No. 95 [June 2011] The Law Relating to Social Security 5.3205 PENSIONS ACT 2004 (c. 35) Valuation of assets and liabilities 143. Board’s obligation to obtain valuation of assets and protected liabilities 144. Approval of valuation 145. Binding valuations Refusal to assume responsibility 146. Schemes which become eligible schemes 147. New schemes created to replace existing schemes 148. Withdrawal following issue of section 122(4) notice Cessation of involvement with a scheme 149. Circumstances in which Board ceases to be involved with an eligible scheme 150. Consequences of the Board ceasing to be involved with a scheme Reconsideration 151. Application for reconsideration 152. Duty to assume responsibility following reconsideration Closed schemes 153. Closed schemes Winding up 154. Requirement to wind up schemes with sufficient assets to meet protected liabilities Provisions applying to closed schemes 155. Treatment of closed schemes 156. Valuations